Intro to Management
Intro to commerce: What Smith said
Adam smith, the wealth of Nations (1776)
-foundation doc for K, free enterprise, free trade…
political economy (voir science po)
K: a legal system that safeguards private property and permits free trade in
competitive markets; production and consumption are not controlled
Myth: Smith founder of laissez-faire, invisible hand…
What Smith said:
Free enterprise will maximize productivity because the “invisible hand” of self-
interest motivates individuals to work hard.
invisible hand: individual desire (free market, no gov, no control over market)
the individual desire to maximize self-interest will max productivity
-the rich get richer, the poor will also be better off as eco grows.
Keep public and private business apart
Keep gov and business apart
LIBRE ECHANGE! Cosmopolitan
Specialization : demand and supply control market !